1. Welcome

2. Chartered Institute of Personnel and Development

3. HR strategies for change A workshop on the human resource aspects of managing change and building organisation effectiveness Jim Cannon and Roger Niven

4. The reconnaissance visit
Many issues identified as important
Evaluation and assessment
Performance management and rewards
Employee development
HR planning, utilisation and development
Retention
Selection
What next for FIST

5. What are the HR problems we face?

6. The Development of Strategic Thought
After Arto Lahti

7. Michael Porter - Forces Driving Industry Competition
Potential Entrants
Suppliers
Industry Competition
Customers
Substitutes

8. McKinsey’s 7- S - Model Shared Values Structure Strategy Skills
Systems
Staff
Style

9. Total business system to deliver value to customers
Technology
Operational excellence
Product leadership
Customer intimacy
Business
Processes
Organisation
Culture
Management systems
Treacy and Wiersema

10. An illustration of technical and adaptive work
Fosbery Flop
Straddle
Height of
high
jump
Western Roll
Scissors
Years
From Richard Pascale

11. The need to involve people
After Rosabeth Moss Kanter
Only a few can choose
Influence
A wider range of experiments and prototypes
An infinite number of very small scale improvements

12. “Management’s mandate is to minimise risk and to keep the current system operating. Change, by definition, requires creating a new system, which in turn always demands leadership”.
John P Kotter

13. Leaders and strategy
“I agree … strategy ‘emerges’ … but we are not helpless. Strategy does not simple emerge … it is emergent. By creating the right set of preconditions one can provoke emergence.”
“Too often we work on ‘the strategy’, rather than the preconditions that could lead to strategic innovation.”
Gary Hamel

14. Improving business results through people
Strategy
People
Requirements
Employee
Needs
Customer
Satisfaction
Human Resource
Strategy:
Employment
Relationship
Employee
Satisfaction
Human Resources
Practices, Policies,
Programmes

15. HR roles in building a competitive organisation
Strategic Focus
Management of Strategic
Human resources - aligning
HR and business strategy by
organisational diagnosis
Management of transformation-
renewing the organisation
People
Processes
Management of infrastructure
- processes to deliver services
Management of employee
contribution - listening and
responding
Operational Focus Source: Ulrich and Conner

16. Managing change

17. Exercise: Reactions to change
Think of a major change in your life:
What were the different reactions you experienced?
What helped and hindered you come to terms with the change?
If it happened again, how would you handle it differently?

18. A spectrum of reactions
Active
resistance
Passive
resistance
Indifference
Acceptance
Enthusiasm
Protests
“Work to rule”
Apathy
Reactive
Loss of interest
Co-operation under pressure
Supportive
Energy
Ideas
Slow down
Intentional errors
4.11

19. Complex forces of change
Restraining forces
Driving forces
Forces come from:
outside
the organisation itself
internal groups
individuals
Lewin
4.7

20. Individual responses to a new reality :
The Transition Curve
HIGH
7.Consolidating
Clear insight into new
reality. Consolidation
of new behaviours.
6. Developing
Search for clarity.
Developing effective
ways to respond to
new reality.
2. Rejection
Rejection of new reality.
Defence of existing initiatives.
Detail of problems.
False sense of
competence re-established.
PERCEIVED COMPETENCE
3. Uncertainty
Sense of anxiety/incompetence.
Frustration.
Uncertainty about how
to deal with new reality.
5.Exploring
Testing new behaviours,
new approaches.
Lots of energy, anger
and frustration.
Beginning to deal
with new reality.
1. Surprise
Immobilisation.
Shock, surprise or
anger at mismatch
between high expectations
of performance
and the new reality.
4. Acceptance
Acceptance of new
reality.‘Letting go’
of the past.
Attitudes and
behaviours
re-examined.
TIME
LOW

21. Case study

22. The Levers of Change Self awareness (Do I understand what I need
to do differently?)
Will (Do I want to change?)
Competence (Am I able to change?)
Conscience (Is the change congruent with
my beliefs?)
Pleasure / Fear consequences (Will I benefit
or suffer?)
Vision (Is this change in line with I want
for the future?)

23. The stages of change (J Kotter)
Establish a sense of urgency
Create a guiding coalition
Develop a vision and a strategy
Communicate the new vision
Empower employees with broad based action
Generate short term wins
Consolidate early gains but push on for more change
Anchor new changes in the culture

24. Activities for successful change management
Avoid over-organising
Provide help and support Communicate like
never before
Managing
Ensure early change
involvement work at gaining
Commitment
Turn perceptions of threats into opportunities

25. ‘Crazy time’ Old New ways ways of of doing doing
things crazy time things
Start of change ‘end’ of change

26. When to change? “The second curve” Relative performance Extra work
Uncertainty
Fight for resources
Time
4.9
Handy

27. Who helps and hinders change?
Seniority
Low Influence on change High

28. Looking for the positives in any change
‘I learnt something’
‘I won’t make the same mistake again’
‘I was more fortunate than some’
‘Today is the first day of the rest of my life – I can choose to let the past go’
‘I cannot change history, but I can steer a different path into the future’

29. Group discussion
What change strategies have worked successfully for organisations represented here today?

30. Human Resource Planning and Career Development

31. The Developing HR Model?
PRIMARY
EMPLOYEES
- key skills
- shared values
- commitment
SECONDARY EMPLOYEES
support skills short-term
TEMPORARY EMPLOYEES
Agency Sub Bought-in
Staff consultants contractors services

32. Structure of a credit card company. A division of a bank
Management %
Middle level staff
Junior staff
Agency
Total
Source: Published accounts
Barclaycard. Note the large agency staff.
Promotion rate to management is about 7:1

33. Constructing a Human Resource Plan
Corporate plans/
objectives +
Sales / Output
Forecasts
feedback & review
- changes in utilisation
- changes in demand
H.R. DEMAND SCHEDULE
quality & quantity
H.R. PLAN
Recruitment
(input)
Training & Retraining
(change)
Retirements / Dismissals
(output)
feedback & review
- external labour supply
- changes in wastage rates
H.R. SUPPLY SCHEDULE
quantity & quality
Analysis of
existing
H.Resources
Wastage
Forecasts +

34. What are the drivers of staff numbers in your business?
Staff Categories
Key
Drivers
Notes:
2.9

36. Productivity measures
Activity
Output/ person (What drives activity?)
Value
Cost or Revenue/person cost
Opportunity
Maximum value produced/hour – actual value produced/hour
Note: Consider the effect, attendance and efficiency

37. Productivity improvement
Job analysis
‘Bottlenecking’
Benchmarking
Suggestion schemes (staff and customers)
Trend analysis
Zero based budgeting

38. Using activity analysis in the European Commission – a case study
Question posed: How many career counsellors were required?
Model created to structure assumptions and see the impact of changed circumstances.
Set agenda to track actual effectiveness and to clarify more realistic assumptions.

39. European Commission – a case study

40. Scenario planning Key Steps: determine scope and timeframe of project
identify current assumptions and mind-set of decision makers
create alternative, plausible scenarios of how future may evolve, identifying key assumptions and decision points
consider drivers of each scenario

41. Scenario planning cont’d...
test impact of key variables in each scenario
develop action plans based upon:
the most robust solutions across all scenarios
strategies that leave options open until most-likely scenario is clear
critical decisions affecting most desirable outcome

42. Scenario planning Today Future Project plan Future scenario A
Today’s Environment
Future scenario B
Future scenario C
Project plan
Date /9 6/9 1/9 6/9 1/9 6/9 1/9 6/9
Project 1
Project 2 Scenario A or B Scenario A
Project Scenario B
Project Scenario C
Signposts
Decision Points

43. The Texology call centre
an case study on planning
Review the notes and information supplied.
In groups, consider the questions asked.

44. Career Development

45. Career Development Planning
assessing skills & competencies
performance management processes
psychometrics
360° feedback
assessment / development centres
career counselling
re-training
job changes
secondment

46. Career review 1. Personal stock take
State: experiences, interests, abilities, motivation
Explore: feelings, e.g. boredom, no challenge, outdated skills
Consider: strengths, abilities, likes personal qualities
2. Personal requirements for the future
are skills being properly utilised
where might they be better employed
is job enhancement a possibility?

47. 3. Consider alternatives
in company - different departments
spare time occupation
other companies in same sector
change of occupation
analysis of the market place
4. Plan of action
new horizons
job search strategy
skills update
self - marketing

48. I WANT
REALITY
I AM ABLE

49. What do I want to do? Same work Different work New sector Same sector
Moderate risk
Research?
Low risk
Job seeking?
Same
work
High risk
Long term?
Moderate risk
Retraining?
Different
work
New sector
Same sector

50. Tools for improving utilisation
Competency framework
Skills transition matrix
Succession planning
Human Resource Plan template
See Jeronimo Martins competency framework
Charterhouse skills matrix
Unilever template

51. Skill Transition Matrix
Into Job A
Into Job B
Into Job C
Entry Level
Basic requirements;
Qualifications,
experience,
competencies
(% who will remain
in 1 year, 3 years)
Ongoing training to
Additional skills,
From Job A
maintain
competencies.
satisfactory
Time to retrain,
performance
(% likely to do job)
From Job B
Additional skills,
competencies.
Time to retrain,
(% likely to do job)

52. Succession Planning Chart
‘49
YEAR OF BIRTH
MANAGER
PERFORMANCE
RATING (A-E) B
JOB TITLE
J. BLOGGS 3
JOB HOLDER
PROMOTABILITY
INDEX (1-3)
PHILLIPS
KEY
EATON
IDENTIFIED
REPLACEMENTS
‘49
MANAGER B
J. BLOGGS 3
PHILLIPS
EATON
‘60
SUPERVISOR
‘53
TECHNICIAN A B
I. PHILLIPS 1
G. EATON 2
ARNOLD
HUNT -
HUNT

53. Succession Planning - Ratings
Performance Rating:
A - ‘exceeds expectations’
B -
C - ‘satisfactory performance’
D -
E - ‘unsatisfactory performance’
Promotability Rating:
1 - ready now
2 - likely to be ready during next 24 months
3 - not ready for promotion

54. Career Development Records
Minimum information required:
1. name & present position
2. date assigned to current job
3. latest performance rating
4. Promotability rating
5. target date for expected move
6. actions required to prepare for (5)
plus record of training / development actions

55. Career & Succession Planning Problems And Issues
the ‘Prince’ and the ‘Pauper’
people are unpredictable
planning and the forced choice
planning and the self-fulfilling prophecy
prediction in a world of change
performance v potential
expectation and ambitions
‘as is our confidence so is our capacity’
opportunity and its prediction
the politics of judgement
potential for what, in growth and decline

56. What should follow the FIST programme for FIST participants?

57. Company groups Review the work we have done today
Identify any aspects that may be applicable to you
Discuss any actions you need to take to introduce these ideas
What further do you need to know from the tutors and others to take these ideas further.

58. Welcome to day 2 What were the key points for you from yesterday
Any queries and questions?

59. Performance management

60. How do we get people to perform?
Situation
Performance

61. How do we get people to perform?
Situation
Vision Behaviour Culture
Mission and goals Group feeling Policies
Strategy
Structure Needs Procedures
Skills Freedom
Performance

62. Balanced scorecard an example from an international bank
Financial
Maximise SVA over time
Clients
Market leadership
Product excellence
Outstanding customer service
Processes
World class efficient processes
Strong preventative and detective
controls
Key performance indicators
Innovation and continuous
improvement
Vision and
Strategy
People
Strong leadership team
High quality people at all levels
Diversity, fairness and opportunity
Commitment to employee success

63. Measures Financial – share price, Price/ earnings, ROCE
Clients – Market share, product comparisons in focus groups, service failures, customer surveys
Processes – Benchmark comparisons, mistakes, performance against Key Performance Indicators
People – Absence, turnover, attitude surveys, upward feedback

64. Case study

65. Assessment and Selection

66. A model of good selection
Define the job to be done – the job description
Specify the ideal candidate – the person specification
Technical experience and knowledge
Behavioural criteria
Define the selection method
Attract suitable candidates
Assess
Attract, appoint and induct

67. Selection methods Application form Interview Competency based
Panel interview
Tests
Group discussion
Report / presentation
Assessment centres
Tests can be of knowledge (typical professional exam), situational (What would you do if..)
Assessment centres combine tests, interviews, in basket ( inbox), panel discussion

68. Assessment – a banking example
Exceeded performance standard 29.3%
Met standard
Failed
Source: Monthly HR statistics

69. Retention

70. Controlling Labour Turnover
expect labour wastage
reduce its impact
be competitive in labour market
emphasise areas of satisfaction
reduce areas of dissatisfaction
analyse reasons for turnover
use feedback to change management systems / practices

71. Some Factors Affecting the Decision to Leave
Reference group
behavior.
Value system,
performance
feedback. Pay
structure.
Chances of
promotion
expectations,
knowledge of
other
opportunities.
Temporarily
committed
Reason for
joining
Age,
grade,
length of
service,
skill type;
level
Needs and satisfaction = Need
contribution balance
Individual
joins
Un-
decided
More
permanent
committed
Male/Female
marital status
Decision
to leave
Critical factor
‘Last Straw’
External
labour
market
Ill health & death
retirement
financial inducement
Termination

72. Employer Influence On Labour Turnover
most firms are
ACTUALLY
here
but….
THINK they
are here
high
Internal labour
market causes
EMPLOYER INFLUENCE
External labour
market causes
low
Bevan 1988

73. Tactics for Reducing Turnover
be the best in town
work hard at labour retention
pilot schemes
establish positive role models
research where staff come from
allocate v select/reject
train and retrain
restructure work
career pathing

74. EXIT INTERVIEW - COMPANY CASE STUDY A SURVEY OF 177 PEOPLE WHO LEFT OVER A SIX MONTH PERIOD
5.15

75. Employee development

76. Training needs analysis
Desired performance minus Actual performance
Gap
Training need Non-training need

77. Non-training factors affecting behaviour / performance
Organisation
Personnel practices
Job design
Supervision
Environment
Information systems
Non-work problems and worries
For example
Organisation. E.g. where work is not organised in an efficient manner, does not flow in a logical sequence from one job to another, unclear responsibilities.
Personnel practices e.g. unfair pay systems, unnecessary rules and restrictions on freedom to act
Job design e.g. too much to be done in the time available
Supervision e.g. poor motivational approach – instils defensive behaviour through fear
Environment e.g. inefficient equipment, layout of work place, too hot /too cold
Information systems e.g. insufficient, inaccurate or out of date data.
Non work problems e.g. divorce

78. Some current ideas Leadership is for all Skills, behaviours, beliefs
Leadership is about:
Behaviour
Coaching
Emphasis on vision and values
Reading situations
Mentoring
Self-awareness
360 feedback
Choices
Management of time and attention
Sartre – we create our values through the choices we make. Walk the talk.
Mandela,
Ghandi
Who are the leaders? - everyone

79. Strategies for matching how we learn to needs at different levels
Activist Theorist Reflector Pragmatist
Organisation
Events Presentations Visibility of Practical support
Conferences on strategy senior managers
Team Team problem Goal setting Observe experts Able to experiment
solving
Individual Learn by doing ‘why do I need to Coach/mentor flexibility to find
know that or do it?’ the best way for me
NWW – annual company conference- participation about the strategy and opportunities to quiz senior managers

80. Company groups Review the work we have done today
Identify any aspects that may be applicable to you
Discuss any actions you need to take to introduce these ideas
What further do you need to know from the tutors and others to take these ideas further.

81. Roger Niven and Jim Cannon
Thank you for coming
Roger Niven and Jim Cannon